As a result, Forbes & Manhattan will acquire 74 per cent interest in the Zululand and Riversdale anthracite collieries. The remainder will be owned by Black Economic Empowerment Partners.

Anthracite is a type of hard coal with high carbon content that burns relatively cleanly.

In addition to the initial payment, Forbes has agreed to pay variable payments based on saleable production levels in the two 12-month periods ending June 30 in 2013 and 2014. Each payment is estimated to be about $7.4 million.

In addition, Forbes has agreed to pay annual revenue share of 10 per cent on incremental revenue above $102 million), to be adjusted for inflation, until June 30, 2025.